Question 1

Can I use a DSCR loan for my San Pablo primary residence?

Accepted Answer

No, DSCR loans only finance non-owner-occupied investment properties. You must use conventional or other traditional financing for a home you'll live in.

Question 2

Which loan type has better interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Conventional loans often offer lower rates for well-qualified borrowers, while DSCR rates may be slightly higher due to their investor focus.

Question 3

Do DSCR loans require tax returns?

Accepted Answer

DSCR loans don't require personal tax returns for qualification. Lenders focus on the property's rental income potential using appraisals and market rent analysis instead.

Question 4

Can I put less than 20% down on either loan type?

Accepted Answer

Conventional loans allow 3-5% down for primary residences. DSCR loans typically require 20-25% down since they only finance investment properties.

Question 5

Which loan is faster to close in San Pablo?

Accepted Answer

DSCR loans may close faster for investors since they skip personal income verification. Conventional loans require more documentation but follow established timelines of 30-45 days.

Conventional vs DSCR Loans in San Pablo: Which Financing Fits Your Goals?